With just $14,000 in a Tax-Free Savings Account (TFSA), you might not think it’s possible to generate much income. But with a little planning and the right dividend payers, that capital can work a lot harder than you might expect. Instead of going for high-risk flyers or trying to time the market, I’d opt for two solid real estate investment trusts (REITs). Those are Dream Industrial REIT (TSX:DIR.UN) and NorthWest Healthcare Properties REIT (TSX:NWH.UN). Each pays monthly, which helps smooth out the ride and brings income in all year round.
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Dream
Starting with Dream Industrial, this REIT owns and manages industrial real estate across Canada and Europe. In its second quarter of 2025, Dream reported solid growth in funds from operations (FFO), with a 4% year-over-year increase in FFO per unit, climbing to $0.26. Comparative net operating income also rose 5% to over $100 million. What’s more, committed occupancy increased to 96%, with strong rental spreads, up 41% in Ontario and 52% in Québec. That kind of rental growth isn’t easy to come by, and Dream is clearly capitalizing on its strong position.
The trust has been busy, too. It closed over $540 million in acquisitions since the start of 2025 and disposed of non-core assets to recycle capital efficiently. Debt is well-managed, with over 70% of 2025 maturities addressed, and the payout ratio sits at a relatively healthy 68.7%. That’s important because it tells me the 5.9% dividend yield is sustainable even in tougher conditions.
NorthWest
Then there’s NorthWest Healthcare Properties. It hasn’t had as smooth a ride, and its dividend comes with more uncertainty. The trust’s payout ratio is high, above 90% based on adjusted funds from operations (AFFO), but management has made progress on key metrics. In Q1 2025, occupancy held strong at 96.5%, and it renewed leases at a healthy 89% rate. Importantly, the trust has been selling non-core assets, bringing in more than $260 million in proceeds, which helped pay down debt and improve liquidity.
There’s still work to be done. Leverage remains above 48%, and the AFFO per unit is just $0.10 quarterly. But NorthWest has extended its debt maturity profile and reduced its weighted average interest rate to 5%. It has also got $268 million in available liquidity. That financial breathing room gives it time to right the ship. The current dividend yield is a whopping 7.5%, and although some might call it a yield trap, I see it as a calculated bet within a balanced TFSA strategy.
Structuring the TFSA
So how would I split it up? I’d consider a split down the middle. That’s $7,000 into each REIT. At current prices, you could get roughly 1,455 shares of NorthWest and 578 shares of Dream Industrial.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| DIR.UN | $12.10 | 578 | $0.70 | $404.60 | Monthly | $6,993.80 |
| NWH.UN | $4.81 | 1,455 | $0.36 | $523.80 | Monthly | $6,999.55 |
Combined, that’s just over $928.40 in annual income from $14,000, or $77.37 monthly! Not bad for two simple positions, and the monthly cadence helps with reinvesting or covering ongoing costs. Plus, this income is tax-free in a TFSA.
Now, it’s not all sunshine. NorthWest is still digging itself out of a tough spot, and even Dream, despite its strong fundamentals, is exposed to higher interest rates. Any sharp downturn in the real estate market could drag both lower. But if the goal is constant income, I’d rather hold two diversified REITs with strong tenant bases than chase volatility elsewhere.
Bottom line
In a low-effort portfolio meant to generate monthly cash, this pairing is tough to beat. You get the stability of industrial growth with Dream and the income potential of global healthcare properties with NorthWest. It’s not flashy, but it’s functional, consistent, and TFSA-friendly.
